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From Bulgaria

07.08.2012 14:41

Bulgarian State-Owned Energy Companies Struggle with Shrinking Revenues

The worsening economic environment has had its impact on the situation in state-owned gas company Bulgargaz and NEK among others

AUTHOR: publics.bg

© Yasen Dimitrov, publics.bg

A substantial fall of incomes and even a turn to losses mark the financial results of the Bulgarian state-run energy companies in H1 of 2012, Capital Daily wrote.

The National Electricity Company (NEK) was already at a loss in the first quarter of the year, which further climbed to BGN 128 m (EUR 6.4 m) in end-June, the financial report of NEK showed. This is due mainly to the decreased profit from selling electricity both on the national and the foreign markets. The gross energy consumption in Bulgaria has dropped with 1.1% compared to the first half of 2011. The commercial export of electricity has also decreased with 22%.

The worsening economic environment has also had its impact on the situation in state-owned gas company Bulgargaz which attributed its losses mainly to the fact that it sells the natural gas at lower rates than it buys it (mainly from Gazprom). Due to the regulations set by energy and water watchdog SEWRC, Bulghargaz has scored a mere 20% growth of income, while the price of natural gas has soared with 40% over one year. The state gas company also falls back on collecting a BNG 20 m (EUR 10 m) debt by the Sofia district heating utility Toplofikatsia, which still struggles with inherited debts and delayed payment recollection from its customers.